THE finance ministrys new three-year, medium-term debt management strategy aimed at raising long tenor foreign official and commercial loans and securing debt relief from commercial creditors is a tad optimistic, despite the agreement with the IMF on a $3bn short-term facility. The plan seeks to meet Pakistans external financing needs through long tenor bonds and concessional multilateral flows as it attempts to reduce the increasing share of short-term loans in the foreign debt stock. It emphasises efforts for fresh commercial loans in three-year or longer rollover tenures, instead of the existing one-year tenures to increase the average time to maturity of debt. The scheme proposes debt relief from commercial creditors to slash the ann…
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